Well KDE 4.2 RC1 is out and will be released this month at 27.01.09.
I installed a generic fedora 10 live-cd on my laptop with the latest kde 4.2 packages on it to try it out. Maybe I'll come up with an paldo-kde-4.2-live-cd soon, cos I like this new version of kde alot.

You can download the immage here: http://rdieter.fedorapeople.org/torrents/

Here some screens:

http://www.abhishekrane.com/2008/12/13/kde-42-beta-screenshot-tour/

seems the fedora-image is buggy. I reinstalled paldo again. Will see with what I'll come up ...